Hello, Thanks in advance for any insight, advice. My case: WFHM is service, Freddie Mac is investor. I have 5%, 15 year fixed. Mortgage balance is $60,000. Home value $400,000. I have lived here 30 years with goal of paying the house off by retirement. I was unemployed for almost 2 years and was denied mod because Freddie did not accept unemployment as income. I am employed this year since January 2012, applied for HAMP, again, but through NACA this time. I even went to event and sat face to face with WFHM underwriter. Months went by. I am contact with someone on WFHM executive team. He tells me they are waiting for NACA to instruct them (WFHM) if they should modify or not. That they took direction from NACA. I asked to have this in writing but of course not. WFHM is great for telling you one thing on the phone that is complete bunk and saying something different in a letter. I told him all I wanted was to have term extended from 15 to 30 years and lower rate so payments are affordable. Although employed I was making less income and have big debt - credit card and student loan. Current income does not cover all expenses.
I get letter asking me to check box that fits my "default" hardship. Options were death of co-borrower or spouse, divorce, etc. WFHM knows there is no co-borrower on the mortgage and they have copies of tax returns for the last few years and know I file single so this new document (I've never had this before) sounds like more baloney. In any case I was denied because my situation was not "default" hardship and I could not prove my hardship was long term.
My questions to the forum: (1) I thought loss of income, underemployment qualified for modification? I hope I am not underemployed forever but I have no crystal ball that tells me when I will get a job that pays 1.5 times as much as I make now. (2) Isn't it about total debt:income ratio? Credit card, 2d mortgage and student loan debt don't count? There is no way I can pay those bills, and property taxes, etc. There is not enough after tax income to cover it all. How can I find out what Freddie Mac requirements are? (3) Is equity in the home a factor for the sake of a modification? Mine is not an underwater case so the servicer does not have much skin in the game. But should that matter legally?
And lastly, are there other programs I can apply for like Making Home Affordable that might work for my situation? I am not sure what the program is through NACA. Thank you very much for your time and advice.